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Case 1
Regina has finally landed her dream job at Abercroanie & Fetch. After just a couple of days on the job, we find out why. Often, when people return merchandise, Regina will ring up on the register that they returned something of more value than it was really worth. She then pockets the extra cash and gives the customer the amount due. Regina finds this method very effective because people really are returning something, so inventories and the reg- ister totals won't be out of balance at the end of the day.
1. What type of fraud is Regina committing?
2. How could her employer detect this kind of fraud?
Explain which it would not be optimal for Firm 1 to make the investment if there were no threat of entry.
Discuss conflict theory as a theory that society and its structural arrangements are organized and held together by the power and dominance of certain groups over others, based upon their greater economic,polotical and cultural resources. is this per..
Suppose Mary’s utility function for two goods X and Y is given by: U(X,Y) = 3X1/2 Y1/2. In Addition, Suppose consumption bundle A consists of 10 units of X and 10 units of Y, and consumption bundle B consists of 20 units of X and 5 units of Y.
Average tax rate is. If Social Security were considered part of the general budget then, Critics of food stamps argue that low income should be given cash payments rather than food vouchers. What are their arguments?
Which of the following is upward sloping?
An economy consists of 100 households. The first 30 households (group A) have $30,000 of income each in period 1, and $50,000 of income each in period 2. The second 70 households (group B) have $40,000 of income each in period 1, and $20,000 of incom..
Assume a monopolist sells its product or service for the same price to all buyers. Also assume that the monopolist lowers its price to increase unit sales (i.e. output). We know that if the price effect associated with an increase in output exceeds t..
Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u (xy)= lnx + 2 ln y (MUx=1/x, MUy=2/y). Derive his demand functions for x and y.
Assume that the economy experiences a supply shock, such as an increase in energy prices. If the government tries to counter this cost shock (supply shock) by using expansionary fiscal policy/monetary policy, explain what will happen to the level of ..
Question 1 The accompanying payoff matrix depicts the possible outcomes for two players involved in a game of Rock, Paper, Scissors. If a player receives a payoff of 1, the player wins;
Suppose that a car was produced but not sold in 2011. The car could still be sold in 2012. According to the book, the car would be counted as part of:
The mayor of new monopoly realizes that the congestion at the port cost the shipping companies and his town money. Which decision would not move him towards a command economy?
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